Rooftop solar households face charges amid grid congestion
Electricity companies will be able to charge rooftop solar users for exporting power to the grid to help ease congestion.
Australia’s 2.6 million rooftop solar owners face the prospect of “sun tax” charges as part of reforms by the national rule-maker that would allow electricity networks to charge households for exporting power to the grid to help ease congestion.
The Australian Energy Market Commission is proposing the change to avoid the problem of “traffic jams” on the network, which are likely to get worse as the grid infrastructure was built when power flowed only one way.
Half of all Australians will have rooftop solar systems within a decade, the AEMC predicts, and it wants to make changes to ensure new adopters of solar can still reap the benefits of going green.
The most controversial aspect of the reforms is a plan to allow networks to introduce export charges for the first time. While some surplus power could still be sent back to the grid for free up to a certain cap, those who choose to send more solar power may be required to choose paid plans.
Consumers with rooftop solar face a $70 annual reduction in the amount of money they earn from sending excess solar power back to the grid, with estimates that a typical 4-6 kilowatt system would reap $900 a year, compared with $970 currently.
The free options would apply up until 2041, while no new pricing plans for existing customers would be introduced before July 2025 to give customers more certainty, the AEMC said. Network companies would no longer be able to put blanket bans on customers from sending solar energy back to the grid as part of the changes.
“If you chose a paid plan, you could earn more at some times and less at others. But you could offset any lower earnings by changing how you use your energy – like using a timer on your washing machine or air conditioner to use more of your own solar during the day,” the AEMC said. “You could also earn by using a battery to store energy and send it to the grid when the price is higher.”
Consumer group Solar Citizens previously slammed the move in March when a draft was released, saying charging households to export their power would increase the payback periods for installations and potentially discourage people from investing in solar.
Four out of every five customers who do not have solar would also see their household bills drop because they would no longer pay for solar export services they weren’t using, the AEMC said, describing the move as overdue.
“Solar owners are likely to benefit less in the future unless we upgrade the grid in a smart way to enable more exports. If everyone on the network is blocked from exporting 10 per cent of the time, that would increase system payback periods by about 10 to 12 months.
“If they’re blocked for 25 per cent of the time, that rises to about 15 months. And if they’re blocked half of the time, you’re looking at up to two years longer to pay back your panels,” the AEMC said.
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